Corporate index hints at possible business loans demand

Mon, 30 Apr 2007

Demand for business loans could potentially be set to rise over the coming weeks after a new study suggested a jump in corporate confidence.

A confidence score of +41 has been recorded after companies were questioned about the UK's economic prospects in the latest business barometer from Lloyds TSB Corporate Markets, up from +29 last month.

Meanwhile, 67 per cent of corporations said they expected their own level of business to increase, regardless of the UK climate as a whole.

Potentially then, this confidence could mean that companies increasingly turn to financial services providers to identify competitively-priced business loans to help them grow.

Trevor Williams, chief economist at the financial services provider, commented on the latest findings.

"This leap in confidence suggests a robust April and the numbers imply that this rate of healthy economic growth will persist," he said.

Meanwhile, as business loan users may already be aware, many financing analysts have predicted that the base rate will increase next month, potentially meaning higher monthly loan repayments.

The Bank of England's monetary policy committee has been widely tipped to take action after consumer prices index inflation rose to 3.1 per cent.

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